A “Mere” day for bulls. Week of July 13-17, 20,000ft view of mkts


Meredith Whitney ignited a Monday firestorm in the financials.

I should have known. This market is evidently not ready to do anything of note. Volumes have been moderate to light. And they are ready to blow like a paper cup if anyone of note says something positive or negative.
Meredith Whitney rallies the markets on Monday with no real new information. Let’s face, Goldman Sachs has no competition. Evidently they have a program which can ruin the world financial markets IF it gets into the “wrong” hands. And who are going to underwrite bonds? Not Lehman, not Bear Stearns. Banks – benefiting from the yield curve… Oh, really…
However, Mrs. Whitney is brilliant and beautiful. And she kept accurately calling for destruction in the financial stocks. And now this is bear on the financials turning bullish on them. And that means something. I understand the rally in these financial stocks. But even turds floated today.

With that said, I am going over my weekly (monday night) preview of the levels in a number of indicies in which I trade. I like this move as it offers me another chance to look over the scene in the markets. Now what to do…
ES Sept Futures – There look to be 3 major points of near term resistance. 899, 909 (downtrend), and 919. Support remains 875 (200 DMA). The longer we stay in this range, the more the 50 DMA will roll over and turn down. I think that may be a technical trigger worth paying attention.
ES 7.13.09.gif
NQ Sept Futures – Resistance 1440, 1454, 1469. Support 1392, 1336.75
This has been the strongest of indexes. Although, I may be shorting this relative to other indexes. (resistance at 1440… 50 DMA, previous highs, at 38% retrace)
EMD – Midcap 400 – Resistance 563, 579.2. Support 537, 507.4
QM – Sept Crude Oil – I like this Crude chart. I anticipate a bounce.
This morning we moved down to the 38% retracement of the up move. A natural place to bounce.
Support 58.25, 53.55. Resistance – 64.09, 67.65
ZN – Sept 10yr note. – I will probably look into selling put options in the TBT (inverse 20+yr). I like this 50% retracement level @ 119 1/4.
ZN 7.13.09.gif
I will probably add more to this later. But for now… I am going to spend the remainder evening with my wife.
This is one of my favorite songs of all-time. In the pursuit of great trades, it is important for me to remember this:

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